eic

silvale23 · ‎February 7, 2023

Hal_Al · ‎February 7, 2023

The basic EIC works on a "bell curve," rising as a worker's wages rise reaching a maximum when annual earnings are between $15,400 and $21,150 (Single with 2 or 3 children 2022) and then declining gradually until it phases out altogether. If your income is on the up slope of the EIC curve more earned income will increase your EIC but if your income is on the down slope, more income (of any kind) will reduce you EIC. The “upslope" on the EIC curve is very steep; basically for every $3 you earn, the government gives you another dollar. See the curve (graph) at:

http://www.taxpolicycenter.org/briefing-book/key-elements/family/eitc.cfm

The earned income credit is first calculated (actually looked up in a table) on your earned income then it is calculated on your total income (AGI). You get the lesser of the two calculated EIC numbers. See the 2022 EIC table at:

https://www.irs.gov/instructions/i1040tt#idm140702909059168

View solution in original post

xmasbaby0 · ‎February 7, 2023

Do you have a question about EIC? This is not live chat. Please ask a clear and complete question so we know how to help.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

Hal_Al · ‎February 7, 2023

The basic EIC works on a "bell curve," rising as a worker's wages rise reaching a maximum when annual earnings are between $15,400 and $21,150 (Single with 2 or 3 children 2022) and then declining gradually until it phases out altogether. If your income is on the up slope of the EIC curve more earned income will increase your EIC but if your income is on the down slope, more income (of any kind) will reduce you EIC. The “upslope" on the EIC curve is very steep; basically for every $3 you earn, the government gives you another dollar. See the curve (graph) at:

http://www.taxpolicycenter.org/briefing-book/key-elements/family/eitc.cfm

The earned income credit is first calculated (actually looked up in a table) on your earned income then it is calculated on your total income (AGI). You get the lesser of the two calculated EIC numbers. See the 2022 EIC table at:

https://www.irs.gov/instructions/i1040tt#idm140702909059168